We just published the first crypto credit industry report. Every issue will include a synthesis of all the industry data that we think matters, as well as our commentary on that data.
While putting this first report together we found that the industry is growing at 20% MoM. We arrived at this number starting with two completely different metrics. Any industry growing that fast should be of interest to the investment community.
Researching and writing the report isn’t charity work. We want to sell our data to every crypto lender. Putting this report together allows us to deeply understand what they need.
There’s a lot of data we didn’t include. That was because we either didn’t trust it or didn’t have time to talk to all the vendors.
As this article points out, our report shows that industry profit margins are low. There are a few reasons for that.
- Some of the lending platforms are not designed to generate profits in a traditional way, so the profit we can attribute to them is $0.
- We heavily discounted some vendor claims because we couldn’t make the numbers add up. We may have been too conservative. Or not.
- It’s a brand new industry, 24 months old, and we’re seeing lots of experimentation with new business models. Although the traditional fintech crowd is focused on profit, the more innovative crypto crowd is more focused on utility. From their perspective, direct profits either don’t matter or will come later.
Our biggest takeaway from this work is how quickly things are evolving. Having spoken to so many people in the industry, we are convinced that this rate of growth will continue, and may even accelerate in the short term. A lot of new vendors and products that should soon see the light of day are being developed.
We’re definitely looking forward to the next report!